Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help What cost per frame would the cost system report if the smallest manufacturing plant that could be built was able to produce 35,000
please help
What cost per frame would the cost system report if the smallest manufacturing plant that could be built was able to produce 35,000 frames? What would be the cost of excess capacity? Assume that capacity cost is proportional to volume. Note: Assume that capacity cost is proportional to volume. Round your "cost per frame" answer to 2 decimal places: Complete this question by entering your answers in the tabs below. What cost per frame should the cost system report to faclitate management decision making? Note: Round your answer to 2 decimal places. Basil's Framing manufactures picture frames in one workshop, which has a practical capacity of 40,000 frames. The variable cost of a frame is $26.60 per unit, and the fixed costs of the workshop are $537,600 annually. Current annuat demand is 28,000 frames. Basil's Framing bought the current workshop because of forecasts that demand for the frames would grow. Required: a. What cost per frame should the cost system report to facilitate management decision making? b. What is the cost of excess capacity? c1. What cost per frame would the cost system report if the smallest manufacturing plant that could be built was able to produce 35,000 frames? What would be the cost of excess capacity? Note Assume that copacity cost is proportional to volume c2. What cost per frame would the cost system report if the smatlest manufacturing plant that could be built was able to produce 35,000 frames? What would be the cost of excess capacity? Note: Asfume that plant capacity is fixed Complete this question by entering your answers in the tabs below. What cost per frame would the cost system report if the smallest manufacturing plant that could be built was able to produce 35,000 frames? What wosld be the cost of excesta casacity? What cost per frame would the cost system report if the smallest manufacturing plant that could be built was able to roduce 35,000 frames? What would be the cost of excess capacity? Vote: Assume that plant capacity is fixed. Round your "cost per frame" answer to 2 decimal places. What is the cost of excess capacity Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started